Accept credit card payments? Beware this new IRS reg

The ARDC, Lawyers Trust Fund of Illinois, and others are sounding the alarm about a harsh new IRS reg that takes effect at the turn of the year. Here's what the ARDC posted on its website.

"Lawyers who accept debit and credit card payments from clients need to be aware of a recent IRS regulation scheduled to take effect January 1, 2013, which has the potential to adversely impact client trust accounts if certain precautions are not taken before January 1, 2013.

"Section 6050W was added to the Tax Code in January 2012, requiring credit card processing companies to verify and match your federal tax identification number and legal name on your merchant account to IRS records (“Form 1099-K”). An EXACT match is required. If you have either abbreviated your name or used an acronym for your merchant account, you will need to contact your credit card processor to assure that your legal name on your merchant account exactly matches the legal name you use to file your tax returns."

Harsh penalties kick in for lawyers who don't comply. Find out more from the ARDC and the LTF.